The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented out for one day. The hotel's business is highly seasonal, with peaks occurring during the ski season and in the summer.

Month Occupancy-Days Electrical Costs

January 1,736 P4,127

February 1,904 4,207

March 2,356 5,083

April 960 2,857

May 360 1,871

June 744 2,696

July 2,108 4,670

August 2,406 5,148

September 840 2,691

October 124 1,588

November 720 2,454

December 1,364 3,529

Required:

1. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day. Round off the fixed cost to the nearest whole dollar and the variable cost to the nearest whole cent.

2. What other factors other than occupancy-days are likely to affect the variation in electrical costs from month to month?